CRE Appraisals: Appraisal Components, Approaches to Value and Cap Rates

Date:
Jul 31, 2018
End Date:
07/31/2018
End Time:
13:30

Fundamental principles and features and CRE appraisals are covered.

  • Types of appraisals by format
  • What to look for within the assumptions and limiting conditions
  • Property ownership interests clarified (fee simple, leased fee, etc.)
  • Highest and best use of the property
  • Approaches to value
    • Cost approach and information useful in the underwriting and loan structuring process
    • Income approach options of discounted cash flow (DCF) and direct capitalization, with the steps to building net operating income (NOI) and the cap rate used in direct capitalization
    • Comparables and the key issue to consider when selecting and evaluating comps
    • Reconciliation of value